The price of the grid is lowered and the profits of the real wind power are reduced

The rumors of years of wind power online price adjustments have finally been confirmed. Yesterday, the National Development and Reform Commission released the news that it will adjust the price of wind power benchmarking, and the price of wind power benchmarking in the three types of resource areas will face downward adjustment. The industry generally believes that the reduction in the price of electricity will further drive down profits. "The development of wind power industry may have a significant slowdown."

In terms of adjusting the price of wind power benchmarking, the price of wind benchmarks in Class I, II and III resource regions is reduced by 2 cents per kilowatt-hour, and the benchmarking prices in Category IV resource regions remain unchanged. The price of wind power benchmarks in the adjusted four resource regions was 0.49 yuan, 0.52 yuan, 0.56 yuan, and 0.61 yuan per kilowatt hour respectively.

According to the National Development and Reform Commission, wind power equipment prices and project development costs have dropped significantly, and prices have been reduced. At the same time, there has been a mismatch between the growth and absorption of wind power in some areas, and the problem of wind curtailment and power curtailment in the Three North Region has become more prominent. “This time through proper control of price reduction, differential adjustment of the price level of each resource zone, and granting a certain construction period of time for approved projects, etc., can guide wind power industry investment and project rational distribution, and increase the national subsidy efficiency of renewable energy tariffs. ."

In the view of the industry, the reduction in the on-grid tariff may trigger a seizure surge in the short term to get the original price; in the long run, it will lead to a drop in investment profits. According to calculations, the average price of electricity will be reduced by 2 cents, and the project's internal rate of return on capital will be reduced by about 2%. The decline in wind power revenue will inevitably weaken its competitiveness. Investors with an important rate of return may be indifferent to wind power, and this may cause wind power investment to slow down. However, there are views that price cuts can force developers to save costs, and the slowdown in development will play a role in relieving wind curtailment and curtailment, and this adjustment also provides for the reform of electricity prices and the realization of new energy sources for affordable access.

In this regard, the implementation of the enterprise is still more difficult. A person in charge of the power company stated that the profitability of wind power investment companies is very limited, and the profits of most companies rely on these 2 cents. According to its introduction, due to the low investment recovery rate, companies have significantly slowed the operating rate of wind power projects that have been approved, reflecting the lack of momentum in wind power investment.